AwanBiru Technology Berhad - Annual Report 2021

INTERNAL AUDIT FUNCTION Internal auditing is an independent and objective assurance activity designed to add value and improve the Group’s operations. It actively facilitates the Group to accomplish its objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of risk management, controls and governance processes within the Group. The Group’s Internal Audit function is carried out by KPMG Management and Risk Consulting Sdn. Bhd. (“ KPMG ”) to assist the Board in maintaining a sound system of internal control. The Audit Committee is aware that an independent and adequately resourced Internal Audit function is essential to obtaining assurance on the effectiveness of the system of internal control. The Internal Audit function assists the Audit Committee in its duties and responsibilities and is free from any relationships or conflicts of interest, thus retaining its objectivity and independence. To this end, the functions of the internal auditors are to:- (i) perform audit work in accordance with the pre-approved internal audit plan; (ii) carry out reviews on the systems of internal control of the Group and the Company; (iii) review and comment on the effectiveness and adequacy of the existing control policies and procedures; and (iv) provide recommendations, if any, for the improvement of the control policies and procedures. The following internal audit activities were carried out in accordance with the approved internal audit plan for FY2021:- (i) compliance review on policies and procedures, limits of authority and other statutory and regulatory requirements within the Group. (ii) reviewed the adequacy and effectiveness of policies and procedures, internal controls, risk management and governance activities and provide suitable recommendations to Senior Management for implementation within the Group. (iii) prepared audit reports and sought Senior Management’s responses including action plan(s) with specific timeline in regard to rectification of deficiencies identified in the existing internal control systems and thereafter, incorporated the pertinent information into the final reports which were then circulated to the Audit Committee. (iv) a follow-up on the status of Senior Management action plans to address the outstanding internal audit observations raised in the last cycle of internal audit carried out by KPMG. The Management is responsible for ensuring that corrective actions are taken within the required timeframe and all findings identified by the Internal Audit function were tracked and followed up on a quarterly basis with the status of the implementation reported to the Audit Committee accordingly. The total cost incurred for maintaining the Internal Audit function for the year under review was approximately RM37,000. This Report on Audit Committee was made in accordance with the approval of the Board on 29 September 2021. Audit Committee Report Awantec | Transparency Annual Report 2021 106